Home buying How-To

We’ve got the How-To list to help with everything home buying – from when you first apply for a loan and start house hunting, right through to settlement and the moving in process.

When applying for a loan

talk to the bank early on and find out what their lending requirements are

find a lender you feel comfortable dealing with and keep in touch with them

create a good savings history – even three to six months of regular saving can help

work out a budget before you see the bank to show you are well organised financially

pay off as many debts as you can before you apply for a loan (having other debts can reduce the amount you can borrow)

reduce the limits on your credit cards (lenders will take into account the maximum you could owe on credit cards)

try to gather up the information the bank needs before you apply (it’ll save you time and means you’ll get your answer faster)

When searching for a property

decide what areas you’re interested in

make a list of everything you’d like in a home (in priority order)

do a budget and gather up your financial information

talk to your lender – and ask about a loan conditional approval

do your research – talk to agents, read the papers and go online

find a good lawyer – ring several for quotes

look at as many homes as you can – and ‘score’ them.

Before making your offer

register your interest if the property is being sold by auction or tender

check the property out – use our checklist and talk with the local council

estimate the value – ask the agent about recent sales and price trends

check local values

talk with your lawyer about your offer (or the auction or tender documents)

get a LIM report unless your offer is conditional on the LIM report

ask your bank what finance conditions you need in your offer

check with your lawyer each time before you sign or countersign any papers.

Once your offer is accepted

pay the real estate deposit to the real estate agent

give a copy of the sale and purchase agreement to your lawyer and lender

decide what sort of home loan you’d like

arrange for a valuation report if one is needed*

organise builder’s and engineer’s reports if they’re needed*

if you haven't already, get a LIM report and check the district plan* (your lawyer usually does this)

arrange insurance for the new home

think about making a new Will

make a time with your lawyer and bank to sign papers

set up any new bank accounts and automatic payments needed.

At settlement time

do a pre-settlement check of the property

make sure you have your share of the money ready to pay to the lawyer

on settlement day check with your lawyer that everything is going ahead

after settlement check the statement and papers your lawyer sends you

make sure you get a copy of the title showing you are the new owner

check your loan and insurance payments are going out as expected.

Arranging the move

if you’re renting, give notice and apply for your bond back

get quotes from several moving companies

check your home and contents insurance covers the move

arrange a moving time with the other owners

contact power, gas, TV, phone and Internet companies

redirect your mail and send change of address cards.

*You may want to do these things before you make your offer but most people do them afterwards because they don’t want to spend the money until they know their offer will be accepted. If you want to buy at auction or by unconditional tender you’ll need to do all your checks beforehand.